An in-plane switching type liquid crystal display presents a pixel display in a way such that an electric field in parallel with a liquid crystal substrate is formed between pixel electrodes and a common electrode. The liquid crystal display of this type has an advantage that a wide viewing angle is obtained as compared with a TN mode type liquid crystal display in which a vertical electric field to a substrate is formed. In conventional in-plane switching type active matrix liquid crystal display, however, an almost perfect black viewing can be achieved in a direction normal to a panel, whereas in a case where the panel is viewed in a direction deviated from the direction normal to the panel, there has been remained a problem that unavoidable light leakage as a characteristic of a polarizing plate occurs in a direction deviated from the optical axis of the polarizing plates disposed on the top or bottom of a liquid crystal cell with the result that a viewing angle is narrowed and a contrast is reduced. In another case where the panel is viewed in a direction oblique relative thereto, an optical path of light is longer, which alters an apparent retardation in a liquid crystal layer. Therefore, when viewed at different viewing angles, a wavelength of transmitted light varies, a color of a screen image changes, thereby causing a color shift depending on an observation direction.
Various kinds of proposals have been offered in order to improve reduction in contrast and a color shift depending on a viewing angle in such conventional in-plane switching type liquid crystal display. For example, a proposal has been offered on a technique that compensation layers each with an optical anisotropy are inserted between a liquid crystal layer and respective polarizing plates in pair sandwiching the liquid crystal layer therebetween (JP-A No. 11-133408). This technique is effective for a color shift, but cannot improve a contrast sufficiently. Another proposal has been offered on a technique that first and second retardation plates are inserted between a liquid crystal layer and respective polarizing plates in pair sandwiching the layer therebetween (JP-A No. 2001-242462). While it is described in the publication that this technique is effective for improvement on reduction in contrast and color shift, a higher improvement effect has been still desired.